Social Security is a cornerstone of many retirees’ financial plans. For most, it provides a steady stream of income in their later years, contributing significantly to their overall economic stability. Understanding what you can expect to receive in benefits is crucial for managing your finances after retirement. The amount of your Social Security benefits depends on several factors, including your lifetime earnings and the age at which you begin collecting benefits.
Knowing the average benefit at certain ages is a good reference point to estimate how much you might expect. This can help you plan and budget effectively, making it easier to ensure your retirement years are as financially secure as possible.
What’s the Average Social Security Benefit for Age 72?
As of the end of January 2025, the average monthly Social Security benefit for all retired workers was $1,979. This amount varies depending on factors like how long you’ve worked, how much you earned, and when you begin claiming your benefits.
For individuals aged 72 and older, the monthly benefit is higher. On average, a 72-year-old recipient of Social Security benefits receives $2,023 per month. This is slightly higher than the overall average, and the reason for this difference comes down to both earnings during their working years and the age at which they begin claiming their benefits.
What Affects Your Social Security Benefit?
Your Social Security monthly benefit is determined primarily by two factors: your lifetime earnings and the age at which you start claiming benefits. These two components are key to understanding how much you can expect to receive upon retirement.
- Lifetime Earnings: Social Security benefits are based on your lifetime earnings. The more you earn throughout your working life, the higher your monthly benefit will be. This occurs because higher earners contribute more to Social Security through payroll taxes, and in return, they receive higher benefits upon retirement. However, there is an important limitation to this: if you earn above a certain threshold, known as the “wage base limit,” any income exceeding that amount does not contribute to higher benefits.
- For 2025, the wage base limit is $160,200. This means that any income earned beyond this amount will not be taxed for Social Security purposes, and therefore, will not increase your benefits. To put it simply: if you earn more than the wage base limit, that extra income will not result in higher Social Security benefits. Therefore, for those earning above this threshold, their monthly Social Security payments will not be affected by income earned in excess of that limit.
- When You Claim Your Benefits: The age at which you choose to start claiming Social Security benefits is another important factor. Social Security allows you to start claiming benefits as early as age 62, but this comes with a catch: if you claim benefits before your Full Retirement Age (FRA), your monthly benefits will be reduced. On the other hand, if you wait until after your Full Retirement Age (FRA), your benefits will be higher.
- Your FRA is the age at which you’re eligible to receive your full Primary Insurance Amount (PIA), which is the amount you would receive at your FRA based on your lifetime earnings. If you claim benefits before this age, your monthly payments will be reduced. However, if you delay claiming until after your FRA, your benefits will increase by 2/3 of 1% for every month you wait, up to age 70. After you turn 70, there is no additional increase in benefits, meaning that 70 is the latest age at which anyone should claim Social Security. Delaying benefits beyond age 70 will not provide any extra benefits, so it’s generally not worth waiting longer than that.
Why is the Average Benefit for 72-Year-Olds Higher?
The average Social Security benefit for individuals aged 72 is higher than the average for all recipients. There are two main reasons for this:
- Higher Lifetime Earnings: Many people who are 72 have likely had longer careers and have advanced to higher-paying positions. The longer you work and the more you earn, the higher your Social Security benefits will be. Additionally, higher-income earners contribute more to Social Security through payroll taxes, which results in larger benefits. As a result, people at age 72 tend to have higher lifetime earnings compared to younger retirees, leading to larger monthly benefits.
- Delayed Claiming: Another reason why 72-year-olds tend to receive higher benefits is that they may have delayed claiming their benefits beyond their Full Retirement Age (FRA). As mentioned, Social Security benefits increase by 2/3 of 1% for every month you delay claiming after your FRA. This means that if you wait until age 70 to claim your benefits, you could receive a significantly higher amount each month. For those who claim at age 70, the increased benefits can be quite substantial. Delaying benefits allows you to collect a larger monthly amount, which is why the average benefit for 72-year-olds is higher than for the overall population of retirees.
Maximizing Your Social Security Benefits
It’s common for many Americans to be behind on retirement savings. If that’s the case for you, the good news is that there are strategies you can use to maximise your Social Security benefits and make up for lost time.
- Delay Claiming Your Benefits: One of the most effective ways to maximize your Social Security benefits is to delay claiming until you reach age 70. If you’re still working at age 70, consider continuing to work to maximize your earnings and your benefit amount. The extra money you would receive each month for delaying your claim can make a big difference in your retirement income.
- Increase Your Lifetime Earnings: Another way to increase your benefits is by increasing your lifetime earnings. If you can work longer and increase your salary, you’ll pay more into Social Security and, in turn, boost your retirement benefits. While this won’t change the past, it’s never too late to increase your earning potential, which can directly affect your benefits in retirement.
- Don’t Overlook the $22,924 Social Security Bonus: There are several lesser-known Social Security secrets that could add a substantial amount to your monthly benefits. One example involves a “bonus” of up to $22,924 annually that many retirees overlook. Learning about these strategies could significantly increase your Social Security income, providing you with greater financial security in retirement.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.
